Arugam Bay is situated on the Indian Ocean in the dry zone of Sri Lanka’s southeast coast, and a historic settlement of the ancient Batticaloa Territory ). The bay is located 117 kilometers (73 mi) south of Batticaloa, 320 kilometers due east of Colombo. The main settlement in the area, known locally as Ullae, is predominantly Muslim, however, there is a significant Sri Lankan Tamil and Sinhala population to the south of the village, as well as a number of international expatriates, largely from Europe and Australia. While traditionally fishing has dominated the local economy, tourism has grown rapidly in the area in recent years. Tourism in Arugam Bay is dominated by surf tourism, thanks to several quality breaks in the area, however, tourists are also attracted by the local beaches, lagoons, historic temples and the nearby Kumana National Park.
Arugam Bay is the most popular surf spot and is also the only international surf competition venue in Sri Lanka. It is also rated as one of the top ten surf destinations in the world. It has also hosted most of the international surfing competitions in Sri Lanka since 2004. It also hosted the So Sri Lanka Pro 2019.